The recent USAID funding freeze has re-ignited discussions of the NGO Bill by the government, which was initially drafted in January 2024 without a comprehensive consultative process with the sector. The draft law titled Non-Governmental Organizations (Registration and Supervision) Act will repeal and replace the Voluntary Social Service Organisations (Registration and Supervision) Act No. 31 of 1980 (VSSO Act). Civil society has raised several concerns in relation to the proposed legislation as it aims primarily at regulating them and not supporting them, and as it contains vague and subjective restrictions on NGO activities. It has been warned that the law could be interpreted to “restrict dissent, alternate political views and activities perceived as opposing government.”
In addition, the political party Sri Lanka Podujana Peramuna has called for the appointment of a parliamentary select committee to investigate both registered and unregistered non-governmental organisations operating in the country.